UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 17112 / August 31, 2001

The Commission announced today that on August 21, 2001 the United
States District Court for the District of Nevada entered default judgment
against Lee E. Gahr, a Vancouver, British Columbia resident and former
chief operating officer of Chill Tech Industries, Inc. ("Chill Tech"), a
Nevada corporation, finding the defendant had violated the anti-fraud
provisions of the federal securities laws by issuing false and misleading
press releases between September 1998 and May 2000 and by selling the
securities of Chill Tech without filing a registration with the
Commission. The Court entered a permanent injunction against Gahr, ordered
the defendant to pay a civil penalty of $246,409, and further ordered the
defendant to disgorge $246,409 of profits from his fraudulent activities.

The Commission filed a civil injunctive case on September 5, 2000
alleging that between September 1998 and May 2000, Chill Tech and Gahr
made numerous false and misleading statements through the company's
Internet website (www.chilltech.com), various press releases, phony
unsolicited faxes, and a magazine article. According to the complaint,
these statements concerned: (1) the "environmentally friendly" nature of,
purported testing, and Chill Tech's ability to manufacture, the "Arctic
Can," purportedly a self-cooling beverage can; (2) supposed sales
presentations of the Arctic Can to various well-known companies and
governmental entities and related revenue and earnings projections; (3)
financial and stock projections, and predictions of future listing of
Chill Tech's common stock on the Nasdaq Stock Market, Inc. ("Nasdaq"); and
(4) Chill Tech's receipt of financing commitments and agreements to
acquire substantial assets. The complaint alleged that this information
was false and misleading because the Arctic Can contained Freon, an
environmentally banned substance; Chill Tech neither tested nor had the
ability to manufacture the Arctic Can; and the company's sales
"presentations" at best consisted of unsolicited correspondence. The
complaint further alleged that the financial projections lacked a
reasonable basis because, among other reasons, they were predicated on
fictitious business relations and undermined by Chill Tech's developmental
stage status, lack of a viable product, and lack of significant assets or
revenues. Further, according to the complaint Gahr sold his personal
holdings of the Chill Tech common stocks into the resulting inflated
market for profits of $246,409. This action was part of the fourth
nationwide Internet fraud sweep conducted by the Commission since October
1998.

The Commission's complaint alleged that Gahr and Chill Tech violated
Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder. The Commission further alleged that Gahr also violated
Sections 17(a)(1), 17(a)(2), 17(a)(3), 5(a) and 5(c) of the Securities Act
of 1934. The Commission sought disgorgement and civil penalties against
Gahr and permanent injunctions against both Gahr and Chill Tech.

The Court found in the final judgment that Gahr violated the anti-fraud
provisions of Section 17(a) of the Securities Act, Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5 by issuing the false and
misleading press releases and the securities registration provisions of
Sections 5(a) and 5(c) of the Securities Act by offering and selling the
securities of Chill Tech without filing a registration statement with the
Commission. In the same case, the Court previously entered a permanent
injunction on December 27, 2000 against defendant Chill Tech finding the
defendants had violated the anti-fraud provisions of the federal
securities laws by issuing false and misleading press releases between
September 1998 and May 2000. Chill Tech consented to entry of a final
judgment without admitting or denying the Court's findings.